Bitcoin exchange shut down "wake up call to investors"

Feb 25, 2014, 06:19 PM

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To supporters, Bitcoin is the future of payment in the internet age. To critics, it's a potential haven for criminals.Now the reputation of the digital currency is taking its biggest battering yet. This after the disappearance of one of the biggest Bitcoin exchanges, called Mt Gox. The Tokyo-based firm said it had found a loophole that thieves could use to fool the transaction process into sending double the correct number of Bitcoins. Some reports say Mount Gox has lost large numbers of Bitcoins -- possibly worth several hundred million dollars. Kolin Burgess travelled from London to Tokyo to protest outside the company's offices and he's very disappointed. One issue with digital currencies is that they're unregulated. So if there are problems, people like Kolin Burgess won't get back the money they've lost. Mike Hearn is chair of the law and policy committee of the Bitcoin Foundation - which promotes the digital currency's use. How big a setback did he think this would be for Bitcoin?